The Phillipsburg School Board introduced the state-mandated policy Monday which requires that district employees live in the Garden State.

The state law, New Jersey First Act, became effective Sept. 1, 2011. Any employee hired by the district on or after that date is required to move to New Jersey or can be terminated if they don’t comply.

An out-of-state resident hired after Aug. 31, 2011 was given one year to move to New Jersey.

School board President Kevin DeGerolamo believes the policy has some pros and cons.

“If people work in the district they are living in, they take a vested interest on issues in the town, such as contracts or taxes,” said DeGerolamo, who is a lifelong Phillipsburg resident. “It also makes it tougher to hire employees because you are choosing from a shrinking pool of candidates.”

DeGerolamo added a great teacher might refuse to take a job at the district because they don’t want to move to New Jersey, but the policy will promote hiring from within the town.

Phillipsburg Superintendent Mark B. Miller is a Pennsylvania resident, but would not be affected by the state law because any employee living out of state before the policy was enacted is grandfathered and does not have to move.

Miller, who was absent at Monday’s board meeting, did not return a call for comment.

DeGerolamo said the state will be responsible for researching where district employees reside.

“Schools sometimes adopt policies to reflect current state statutes,” Belluscio said Monday.

Employees do have a chance to apply for an exemption to move out of state. The exemption is on the basis of critical need or hardship and is heard before a three-person board appointed by the governor.

Current district employees are also not allowed to move out of state if they were hired before the law’s effective date.

The New Jersey First Act is also effective for all public state employees.